Markathon December 2013 by Markathon IIM Shillong

Marketing Magazine of IIM Shillong

Volume 5 | Issue 6

EVEN GODS NEED SELLERS

Vartalaap with Mr. V. Srinivasan Adams Distinguished Professor of Management, Emeritus at the Stanford Business School

December 2013

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From The Editor Dear Readers, The chill is setting in, and trees in Shillong have already shed their pink flowers. As Christmas closes in and the bells ring, we can look back to see what an eventful month this has been. While NaMo and RaGa tussled for their share of limelight, AAP took the cake away, and how! As the country was reveling in a new hope of real democracy, tables turned when homosexuality was deemed as crime once again. On the business front, we saw HUL go all out launching its heartwarming Project Sunlight, raising hopes of a sustainable future through evolved business practices. In the world of ads, Google made a wave with its latest Reunion ad while Titan, Oreo and Vodafone shook the boats as well. As another year nears its end, it’s time for the senior team at Markathon to pass the baton on to the able hands of the junior team. It has been a year of excitement, stress and learning- an experience as no other. And it would never have been possible without the constant support and feedback from our reader community. We thank you for following us and helping us provide you with the best marketing content from all over the world, time and again. One of the most emotional points for the country this year was undoubtedly the retirement of Sachin Tendulkar from International Cricket. Much has already been spoken about the legend he has left behind, and how could Markathon lag behind in analyzing what a brand he has

carved out for himself. Our cover story for this month ‘Even Gods need Sellers’ revolves around what makes Brand Sachin stand tall today and predicts an outlook for what turns it may take post-retirement. This is one section you cannot afford to miss. For this month’s Vartalaap, we dig into our old treasures and bring to you an exclusive interaction with Mr. Professor V. Srinivasan, Adams Distinguished Professor of Management, Emeritus at the Stanford Business School. He shares with us his experiences in the area of market research, especially in the field of conjoint analysis. This month’s ‘Radical Thoughts’ speaks out about celebrity worship that continues to prevail after celebrities perish and how brands rake in millions using them. In the young section ‘Jab They Failed’, we talk about how Virgin didn’t fizz enough when it made an overambitious attempt at entering the cola industry. These two are definite must-reads.We give you a glance at some of the best books to dive into for more marketing gyaan this year under the section ‘Book Mark’. Watch out as we come up with a brand new section instead, next edition onwards. For any suggestions or feedback, please write to us at markathon.iims@gmail.com. So sit back and enjoy as we take you on a journey through the hottest and latest marketing gyaan. Happy Reading!

The Markathon Team Editors

Creative Designers

Sushree Tripathy | Vaibhav Annam

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Contents Perspectives Values Driven Marketing Utkarsh Modi | IIFT Delhi

Sixth Sense Abhimanyu Roy | IMT Ghaziabad

EVEN GODS NEED SELLERS Ramanathan K and Varsha Poddar | IIM Shillong Vartalaap Professor V. Srinivasan Professor of Management, Emeritus at the Stanford Business School

Eye 2 Eye Celebrity Branding by Micromax: Sensible Strategy or Over the Top Advertising 16 Akshay Modi | IIFT Delhi & Mukul Chandra | IMT Ghaziabad Silent Voice IRCTC Rutwik Phatak | IIM Shillong

Specials Addicted Sushree Tripathy & Swikruti Panda | IIM Shillong

Bookmark Best of 2013 Pallavi | IIM Shillong

Jab They Failed Vaibhav Annam | IIM Shillong

Radical Thoughts Ashok A | IIM Shillong

Updates Prateek Gaurav | IIM Shillong

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Values Driven Marketing By UTKARSH MODI IIFT DELHI

Before we proceed, let us look ahead to take a look at the past and arrive at the present. Imagine you sit with me at an air bound coffee shop at the beginning of the 22nd Century discussing about how Marketing 8.0 is on the decline and how we need to look beyond – perhaps formulate a new version and redefine Marketing – Marketing 9.0! Farcical? Blasphemous to some?

mation Technology, Marketing couldn’t survive solely on the product and selling concept. Let’s fast forward to the present age then, consumers are much better informed and can compare value offering of similar products at their fingertips. Their needs are changing fast and today the product value is defined by the customer. This is the age of Marketing 2.0 – the customer centric era. It entails the marketers to identify unfulfilled needs and wants and convert them into profitable opportunities. We are seeing a plethora of customized products to cater to specific needs. Standardization has passed. So for every standard Ford T of the past, you get a whole gamut of offerings each catering to different segments from niche to mass. Customers even modify the products to tailor to their needs (Dell’s Mass Customization). Consumers today are spoilt for choices.

Well then join me aboard this journey as we explore the evolution of Marketing. Let us shift backwards now – the advent of the 20th Century as a certain Mr. Ford proudly remarks “Any customer can have a car painted any color that he wants so long as it is black.” Marketing 1.0 – the Product centric era. Here Marketing was evolving and confined to a very narrow definition – it was considered as mere selling, an art of persuasion. As the consumers evolved, so did the marketers. With the advent of Infor-

Fig: History of Marketing

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The traditional objective of Positioning has always been december 2013 to capture the consumer’s minds as argued by Al Ries.3

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Naturally, this phase had to evolve and we are on the cusp of seeing an evolution to the next phase of Marketing – Marketing 3.0 – the human centric era , as Kotler very famously proclaimed a few years back. So what exactly is Marketing 3.0? Before that, let us take a quick comparison between Marketing 1.0, 2.0 and now 3.0.

However, today Emotional marketing has developed and it’s not just the customer’s mind that is targeted. Brands look at innovative ways to connect with the customers at a subconscious level. Experiential Marketing has grown. Some Marketers were able to leverage this to their advantage even before the concept really took off. Take the example of Starbucks and its projection as ‘A Third place to drink Coffee’ or Apple’s Products which have always been more than just new Tech products for their customers. In essence Kotler defines Marketing 3.0 as values driven marketing – covering the customers’ mind, heart and spirit.

Consumers are no longer solely restricted to consumption but are getting equally involved in collaborative value creation and this age of participation essentially defines Marketing 3.0. We are witnessing a growing trend towards participative customers. Companies now collaborate with customers as marketing managers try to understand their minds and capture market insights. In some cases we can actually see customers designing and making products for themselves. Take the example of Starbucks, which has Hear Music Media Bars, a service that allows customers to create their own music CDs via tablet PCs. Back home, take the example of Tanishq - the jewellery arm of the Tata Group, which recently launched a promotion drive under the name ‘My Expression’, which invites consumers in a co-creation activity. Customers were invited to submit their own design ideas for a new line of jewellery and got to collaborate with top designers at Tanishq to come up with Mia - a new jewellery line for working women.

He introduced the Values Driven Matrix – that essentially defines Marketing 3.0 in a nutshell. So what implications does it have for the new age Marketers prepared to embrace Marketing 3.0? As a company tries to capture the mind,heart and the spirit of the customer, it has align its operations keeping in mind the mission, vision and the values of the company – which act as enablers. The company’s mission is represented by an inverted doughnut – as the core objective of the company remains the same while the periphery is flexible and accommodative to change. The Company’s vision is guided towards the future (as represented by the compass). Values of the company act as the guiding preamble which drives it to deliver the best offerings and thus differentiate itself from others. Profitability and Return ability are driven by a long term plan for sustainability. Companies are being driven by not just creating economic value but also promote social progress and benefits for all. Triple Bottom Line Concept

We are witnessing the rise of the new ‘Creative Class’. According to The Economist, not only is the customer the king: he is also the market-research head, R&D chief and product-development manager.2Customers are expressing themselves in new ways and find avenues like digital media to have their independent voices heard. They are no longer affected by one way or mass communication.

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december 2013 right chords with the customers by connecting with them at an emotive level; collaborating with them and making them feel responsible for the product. A well-developed CSR program can go a long way in connecting with customers who are increasingly becoming cognizant of their environment and feel an urgency to do their bit. Take the example of Campbellâ&#x20AC;&#x2122;s Soup which recently changed the color of its packaging to Pink during the Breast Cancer Awareness Week. Not only did it serve the purpose of spreading awareness well but the benefits could also be seen in the increased demand of the product. What approach should be followed if Marketers are to succeed at their task in Marketing 3.0?

Fig: Value based matrix

is being adopted by a number of firms bringing together â&#x20AC;&#x201C; economic value, environmental health and social progress. But what were the key drivers to this shift towards Marketing 3.0? For one, the rise of technology particularly the internet and social marketing paved way for the age of participation and collaborative marketing. People trust each other more than marketers. Second, more and more collaboration tools meant more trust between customers. According to a survey by Nielson, 90% of people acted on recommendations from known people and consumer opinions posted online while traditional advertisements and text ads on mobile phones had the least credence. The percentage of weekly social media users is at 73% of the online population. With this growing influence , customers are becoming the true marketers of a product in every sense.

By essentially breaking up Marketing as an interplay of 3 factors â&#x20AC;&#x201C; Positionig , Differentiation and Brand, Kotler designed the 3i framework6 which encompasses Brand Identity, Integrity and Image. A Brand should be clearly positioned in the mind, heart and spirit of the custoemrs to give it a clear brand identity. Strong differnetiation is required to provide brand integrity to the positioning and in turn project a strong brand Image of the company. With this framework and the embracing the shift towards Marketing 3.0 Marketers can make the most in this age of participation and collaborative value creation. Embrace or Perish.

Needless to say, all this requires companies to strike the

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Sixth Sense How organizations use sensory marketing to get ahead By Abhimanyu roy imt ghaziabad She’s wearing red. Her scent is irresistible. She doesn’t say a word but her silence speaks a thousand. You can’t wait to have her in melting in your hands. You can’t control yourself any longer. Finally, it’s time to take the plunge and bite… . . Into your Kit-Kat bar!

friend decided to treat you to some delicious KwalityWalls strawberry ice-cream. The ice-cream tastes amazing but the environment doubles your enjoyment-the smell of the maidan grass, the sound of your friends’ constant chatter, the sweet taste of strawberry. Everything combines perfectly to make that moment special. Now let’s take a look at Kwality-Walls’ latest TV spot-a boy and a girl at the beach punctuated with the sound of a nondescript jingle. Which of the two do you think you would remember the next time you are in the mood for ice-cream?

Welcome to the world to Sensory Marketing! The goal of marketing is to communicate the value of a product to the customer. First there was the print ad. Consigned to newspapers and magazines they sought visual appeal to attract the attention of the customer. It was followed by the radio jingle. Catchy and memorable they influenced our auditory perception. Finally, the TV spot came about - an amalgamation of sight and sound – it has spawned countless memorable adverts. Of course, all of this was in addition to traditional direct selling tactics like offering a free taste of icecream. They all strived to give the customer an experience as close to actually using the product as possible. However, that is also where they all failed.

A study by Rockefeller University shows that 6 out of 10 will recall the former while only 1 out of 10 will recall the latter. This is because of a quirk of biology which enables us to recall things we experience more vividly than events that are simply presented to us. The ice-cream that we enjoy on a hot afternoon appeals to all of our senses, whereas the advertisement only requires our eyes and ears. This is where sensory marketing comes in. Sensory marketing stimulates the five senses-visual, auditory, taste, smell and touch-to connect with the consumer at an emotional level. The mixture of these five senses causes the consumer to form certain concrete beliefs and feelings about the brand. The key benefit of using this approach is that recall is faster and more substantial. Although sensory marketing seems like an attractive proposition it raises two valid questions – How would an organization use it? And indeed, does an organization actually use it?

Imagine a hot summer’s day. After a close game of gully cricket, your

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The smell of freshly brewed coffee, the jazzy beats of Thelonious Monk, the rustic yet modern interiors, lighting reminiscent of Paris on a foggy autumn evening – they all merge together to epitomize Starbucks. Starbucks outlets

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december 2013 looking for a new experience. The unusual choices that the chain has made have translated into immense growth and it owns over 120 hotels worldwide. The two examples till now deal with personal marketing and direct engagement with the customer. But it is also possible to mass market using sensory marketing as demonstrated by Korean Air. In 2007 Korean Air launched an innovative television advertisement. Images of luxury and art were highlighted by elegant music. Clips of wine and bottles of perfume stimulated taste and smell sensations. The sense of touch was stirred by showing a man and a woman dancing hand in hand. It was only at the very end, after setting the right mood that Korean Air was mentioned. The campaign was a success. Customers associated Korean Air with the qualities highlighted in the advertisement and in the following year their share price had almost doubled.

feature the same standardization that fast food chains like McDonald’s and Subway practice but at a whole new level. Each Starbucks store is supplied with 2 or 3 CDs a week containing music that accentuate the Starbucks experience. The organization has even taken pains to maintain the scent of their stores – In 2008 Starbucks cut an egg breakfast option from their menus because the smell of eggs conflicted with the smell of freshly ground coffee.[5] All of this is done in order to make an indelible impression in the minds of the consumer and it works! Research by Nespresso shows that more than half of the coffee drinking experience is not derived from the quality of the coffee but rather from the environment. Starbucks’ unrelenting attention to detail to sensory marketing has given it a competitive advantage that is difficult to replicate – the perfect setting. It is little wonder that Starbucks has been able to add over 14000 stores in the last 15years.

Sensory Marketing is a new paradigm. It engages all senses of the prospective buyer to give them a more enriched experience of using a product. Although it has only been used by a few organizations, the organizations that have used it have made tremendous gains. The benefits it offers far outweigh those of existing modes of marketing. It is the future and just as William J. Cameron, former director (Public Relations) at Ford said of the then blossoming radio advertisement – Never before did advertising have such a golden opportunity.

If you stay at the Le Méridien hotel in New Delhi you will be struck by two things. First, it’s almost identical to the Le Méridien in Mumbai and secondly it is distinctive. Almost all aspects of a guest’s stay at the any one of the outlets of the hotel chain are tweaked to make it stand out. Whether it is the unique scent of old books in the lobby (piped it by inconspicuous smell machines) or the sound of galloping horses that is played in the elevator – everything is done to make the hotel different. All of this is in sync with Le Méridien’s philosophy of catering to guests

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Fig: Restaurant at Le Meridien in New Delhi

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cover story

december 2013

Cover Story

Even Gods Need Sellers

Ramanathan K

Varsha Poddar

IIM Shillong

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cover story

december 2013

ime and again, many a sporting legends have risen from the soils of our country and spread its colours on international bulwarks. Their brilliance has been on full display – in plain sight, for all to see – be it Pullela Gopichand’s agility on the badminton court or Dhyan Chand’s memorable goalscoring feats on the hockey greens, Dara Singh’s mighty grunts of victory or Vishwanathan Anand’s perspicacity at the checkerboards. The nation has bestowed them with appropriate honours and medals; it has carved them in the annals of its sporting glory. Yet, none of these sports have enjoyed the instant favouritism that the game of cricket commands and no sportsperson has come close to being as big a heart-throb as the Little Master who recently hung up his boots. “Cricket is India’s religion, Sachin is its God”, a stock statement that seems to have been around forever, captures quite concisely the sentiment that both the game and the player elicit from the Indian masses. However, what is the philosophy behind this religion? And who raised this God to his pedestal? The answer is – fortuitous timing, the economics of international trade and some cuttingedge marketing acumen displayed largely by a man who was known as Mark Mascarenhas. Kapil Dev and his team returned home to India in 1983, proud victors of the World Cup – the first that India had ever won. While the nation was instantly catapulted to international fame and glory, its citizens were

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glued to colour television that had only a year ago, in 1982, invaded their homes after robbing its blackand-white cousin of much affection. Cricket grew more popular than ever then, and with every child in every gully wishing not only to bask in but also to replicate the glory of a World Cup victory, Sachin Tendulkar could not have chosen to a better time than the year 1983 to make his entry into the game. Of course, it is undeniable that Sachin played the game with a finesse that was non-pareil and with a spirit that was the very essence of the gentlemen who are supposed to be playing it, for it was these that caught the eye of Mark Mascarenhas, a USbased manager with CBS, when he visited India in 1993. Mark revolutionalised the Indian cricket viewing experience by breaking the deadlock which tied it to Doordarshan and, as a result, flickering and grainy telecasts. In the months before the 1996 tournament, the World Cup was everywhere. Hoardings on streets played up individual rivalries, and advertisers released new commercials for the occasion, creating for the first time the atmosphere of frenzied commercial anticipation that now attends every major international cricketing event. The liberalisation that the Indian economy had faced shortly before in 1991, was becoming visible in terms of the sponsors for the event that ranged from brands that

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december 2013 chin into WSG and managed his portfolio just as Sachin would have liked.

sold televisions to chewing gum and many things in between. 1996 also marked the beginning of the partnership between Sachin Tendulkar and Mark Mascarenhas. Sachin became the highest earning cricketer, thanks to the contract that Mark signed with him and the endorsements that followed. The five year contract was renewed by Mark in 2001, against criticism that the $100 million deal would tank as Sachin wasn’t at his best form, however, Mark trusted in Sachin – his investment and in his foresight – that told him that the multitude of international sports, beverage and durables brands coming to the country would need selling, and cricket was the only thing that sold in India. And he had ensured, by then, that when cricket needed selling, no one could do it better than Sachin Tendulkar. Unfortunately Mark Mascarenhas did not live to see his dream come true. He passed away in a road accident in 2001 and soon the company that he founded, WorldTel, too faded away. However, he left his legacy in the good hands of Vinod Naidu who followed Sa-

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Sachin till date has managed more than 30 brands, the most memorable of which include Boost, Adidas, Coca-Cola, Aviva Life Insurance and Visa. He may not play in the field anymore, and that of course would be an emotional reality that his fans would try to cope with. However, it remains to be seen how Sachin the brand fares and this would be a tale that the entire nation would wait for with bated breath. Social media was rife with campaigns from the brands that were eager to latch on to the buzz around the Master Blaster’s retirement but the one that stood out was BCCI’s Thank You Sachin Campaign. BCCI’s Innovative Campaign As that dreaded day came, Board of Control of Cricket in India (BCCI) tied hands with Twitter and Digigraph. me to launch the “Thank You Sachin Campaign.” BCCI, in an aim to build a strong relationship with its huge fan base of 670,000 Twitter followers, asked their fans to tweet a farewell message to the Legend with the hashtag #ThankYouSachin and in return they gratified the fans with a personalised picture of Sachin with his autograph. This simple yet catchy initiative appealed to a large

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number of fans and it went viral when some of the current Indian players who themselves consider the man as God, also started tweeting about it. The campaign generated a whopping 3+ million tweets and it ended with Tendulkar himself acknowledging the campaign which went on to become the most retweeted tweet ever in India. For BCCI, registered as a non-profit organisation, to indulge in such a campaign is itself praiseworthy but one only wonders why some big brands which Sachin endorsed and continues to endorse did not try do any such similar activities. Yes, there were considerable amount of activities by these brands in the social media but one really does not know the reason why they did not do something tangible for this Legend who in one way or the other helped in building the brand to what they are today. Future Outlook Sachin’s emotional farewell speech, which brought tears even in the eyes of the not so greatest fans of the game, showed his humility and his groundedness despite all his success. He has become an icon, an inspirational figure who defines the epitome of success and every Indian aspires just to be like him. Undoubtedly, he holds that larger-than-life status in our hearts and it surely is here to stay for some time. But for how long, is the question.

Brand Sachin up and going for the short run. Adidas and a few major brands have already confirmed that they are going to continue with Sachin, citing, “When you sell Tendulkar, You sell Inspiration.” Sachin is also involved in a few charitable causes and it will keep up the brand alive. But the real question is, will it last in the long run? We have witnessed how even the finest players of their time have now faded into the dark. Brand Sachin indeed transcends cricket but unless and until a few steps are taken by Sachin and WSG, it is bound to be stymied in the long run. Sachin who was visible to a commoner at least 300 days in a year will now be hardly visible. Indulging in social causes, active participation in the Rajya Shabha and contributing to the development and betterment of sports in India are just a few measures that they should take from their side to keep the brand afloat and prevent it from dying an abrupt death – like a star disappearing in its black hole. He is a fine sportsman and gentleman, beyond doubt. But he has also proven to be a finer brand. While the sports enthusiasts amongst us have enjoyed his brilliant cricketing career, the marketers in our midst would like him to display a similar feat in keeping alive the reputation, trust and hope that he has created in the past 24 years.

His endorsements are not expected to go down anytime in the near future and his Bharat Ratna award which he shall receive in January will surely keep

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vartalaap from archives

december 2013

An Interview with Mr V. Srinivasan The Adams Distinguished Professor of Management Emeritus at the Stanford Business School

rofessor V. Srinivasan, “Seenu” as he is commonly known is his circle, is the Adams Distinguished Professor of Management, Emeritus at the Stanford Business School. Having completed his Bachelor’s from IIT Madras as a gold medalist, he worked for two years at L&T, prior to joining Carnegie-Mellon University where he received his MS and PhD in Industrial Administration. He has an expertise in the area of market research, especially in the field of conjoint analysis where he has done interesting experiments, predicting job offers which students at the B-school would take up.

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vartalaap from archives

december 2013

Markathon: Can you share few of the learning from your work experience at Larsen & Toubro which helped you in your management journey?

knowledge together with cost data and information about competitive products to come up with products that customers would want to buy while still allowing companies to make greater profits. UnderProf. Srinivasan: It has been a real joy to teach the standing customer preferences by indirectly asking intelligent, diligent, and experienced students on customers to rank hypothetical products described both campuses. Stanford has a two-year (18 months) in terms of multiple attributes or features became an MBA program compared to the 12-month program interesting basis for a linear programming procedure (LINMAP) that we jointly develat the ISB. The Stanford program allows more “soak time” but the oped, resulting in two influential ISB program is more efficient for research papers. The name “Conthe ISB students who often borjoint Analysis” itself was coined row large sums of money (relative by me and Professor Paul Green to their incomes). An important of Wharton in a research paper additional difference is that the in 1978. (There was something majority of Stanford students are called conjoint measurement at non-engineers but the majority of that time, but it is very different in ISB students are engineers. Conseterms of focus.) As a way of testquently, the ISB students are more ing whether conjoint analysis can inclined toward them mathematireally predict real world behavior, cal details of the material we cover I used Stanford MBAs’ job choices. in the classroom. Preliminary qualitative research had identified eight factors (area Markathon: Your work on conof the country where the job is joint analysis is highly acclaimed. located, number of days in a typiIt is said that you correctly precal month the MBA would have dicted which job offer each of to travel away from home, salary, your students at the B-school would take up! Can nature of the job, growth rate of the company, etc.) you share some insights over the applications of this The MBA students completed the conjoint analysis technique? task prior to receiving any job offers. At the time of graduation they provided us data regarding which Prof. Srinivasan: Here was another pivotal turn in job offers they actually received and what the attrimy life. As I applied to U.S. Management programs, I butes of each of those jobs were. We could then use thought I was going to do an MBA and return to the the conjoint analysis results for each MBA to predict world of business. What I learned very quickly during which job he/she would choose and compare it with the MBA program was that I was more interested in which offer each of them actually took. We were corand had greater aptitude for research, asking and an- rect three out of four times. Conjoint Analysis is now swering important intellectual questions. Indeed, a used over 14,000 times worldwide. It is most often few of my faculty members at Carnegie-Mellon asked used to help define the product (or service) and assome to switch to the doctoral program at the end of ciated price. Conjoint Analysis can answer questions the first semester of my MBA. I ended up finishing up regarding how much the market is willing to pay for a my Ph.D. in less than three years and getting an MBA feature of a new product, how much the market valen route. At Carnegie-Mellon I had a roommate, Al- ues one brand over another (brand equity), defining lan Shocker, was very much interested in marketing, the market in terms of benefit segments that enable which differed from the Manufacturing Operations definition of product lines, and answering numerous emphasis that I had acquired from L&T. Our numer- “what if” questions in terms of what is likely to hapous conversations led to the thought that if we can pen under alternative configurations of our compafind out what customers want, we can combine that ny’s and competitive companies’ product and pricing

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vartalaap from archives

december 2013 equity that connects to the emotions of a consumer, be quantified?

moves.

Markathon: With so many factors driving the purchase decision of consumers, what are the main Prof. Srinivasan: I believe we can both measure and considerations while deciding on the list of attri- understand brand equity by conceptualizing brand butes for conjoint analysis? equity as what the brand adds in terms of incremental (profit) contribution over and above what the unProf. Srinivasan: Qualitative market research (focus derlying product or service can provide. In a research groups, one-on-one interviews, ethnographic meth- paper with my former doctoral student Chan Su Park, ods) is very useful as it helps us come up with a more currently a Professor at Korea University, we provide complete list of attributes. I have a method that examines four different (with my former doctoral student, components of brand equity: brand Oded Netzer, currently Associate awareness, incremental preference Marketing analytics are very useful Professor at Columbia) develbased on attribute perceptions, in answering a number of questions oped a method called ASEnon-attribute based brand eqsuch as relative effectiveness of alternaMAP designed to help us uity (customer self-exprestive promotional decisions, customer value prioritize amongst these sion), and the increased analysis, and so on. India is playing a significant attributes. distribution the brand role in doing marketing analytics. Conjoint analysis is enables. Of course, we complementary in that it answers a different set of Markathon: With the should not expect the important marketing questions regarding the advent of technology same degree of precision product attributes we should provide in a and social media, data in a brand equity study as in a product or service. mining and data analytics conjoint analysis study. have become the order of the day. How effective would conMarkathon: What would be your joint analysis be in this setup? advice to our young readers who aim to become successful marketers? Prof. Srinivasan: Marketing analytics are very useful in answering a number of questions such as relative Prof. Srinivasan: Marketing is an exciting field beeffectiveness of alternative promotional decisions, cause it emphasizes both the creative side of comcustomer value analysis, and so on. India is playing a ing up with new ideas for products and services and significant role in doing marketing analytics. Conjoint communicating them to consumers, and the scienanalysis is complementary in that it answers a differ- tific side of understanding customers and marketing ent set of important marketing questions regarding analytics. It is important for students to take advanthe product attributes we should provide in a prod- tage of their time at MBA programs by taking courses uct or service. that give them knowledge that develops both their qualitative and quantitative skills. It is also truly imMarkathon: If we talk of Brand equity measure- portant to learn from successful examples in marketment, how can something as intangible as brand ing past and present in the world around us.

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eye2eye

december 2013

Celebrity Branding by Micromax Sensible Strategy or Over the Top Advertising? mukul chandra

akshay modi iift delhi

imt ghaziabad

Micromax has enjoyed great successes of late – now the second-largest selling smartphone maker in India. So far, it has ridden the wave of being a “cheap” alternative to the Samsungs, Nokias and Apples of the world, thereby capturing twentytwo percent of the market. However in October, it pulled off a stunner by roping in Hugh Jackman, the face of many Hollywood blockbusters, as its latest brand ambassador. With the company looking to shift gears and increase its presence internationally, a lot of it does seem to fall in place. From Micromax’s perspective, its target audience can be categorized into those who know who the Wolverine star is, and those who don’t. It has a significant presence in the latter category. Now with Jackman, they are now looking to build expand in the former too. Thus, it looks to be changing its positioning from a “cheap” phone-maker to a “value-for-money” company. More importantly, the company harbours ambitions of making it big internationally, and is looking to expand into Russian, European and US markets. This necessitated the need for an international face with whom the audience could connect with, given that the brand shall be introduced to them for the first time. Also, with the “Made in India” tag not exactly a competitive advantage in the consumer electronics space, Jackman’s association would help it gather credibility. In this regard, Micromax would do well to focus on its products alongwith its communication. Even Jackman would not be able a trashy product which does not conform to international standards, without multitasking features as highlighted in its TVC. But pulling off one of the most ambitious endorsement deals in India should give it confidence going forward. The move is indeed an audacious one. Given its upsides, it makes sense to be bullish on Micromax.

The “Hugh Jackman Micromax “ advertisement by Lowe Lintas depicts how a child allays his fear and finds his hero ‘the juggler’ and when he grows young he inspires him to juggle his many lives – friends, work , passion and how Micromax Canvas Turbo assists him. The success of a brand promotion depends upon how the product and the brand fit and resonate with each other. Hugh Jackman is an international figure with his versatile flair as an actor, dancer and singer with his superior performances in X-men trilogy, Van helsing, Swordfish and multiple such flicks. The sexiest man alive in the world is adored for his brawny body and his Australian accent. The fearless desi brand Micromax has well established itself in the small towns and rural India , Srilanka and Bangladesh with its low-cost innovative offerings which started with a month long battery backup mobile phone Xli in 2007 and association with brands such as Akshay Kumar and M.S. Dhoni. But Micromax has been tagged as a cheap phone or as an affordable alternate to Samsung or Apple, a tag it wants to shed now to penetrate into urban market. With 22 % market share in the Indian smart phone segment (IDC report) Micromax has plans to dive into international markets starting from Russia and Romania and it is here that Wolverine will act as its global face. The thumb rule of celebrity endorsements says that celebrity should be well known . The advertisement may not work out fully for the Indian market as Hollywood stars still don’t have a strong appeal in India. The brand may appeal to opinionmakers as the advertisement has been successful in creating the buzz. It can’t give a long-term leeway unless micromax smart Phones are backed with high performance superior technologies and a huge product line-up.

Topic for the next issue: “Prankvertising : One Hit Wonder or Dawn of New Age Marketing?” Your opinion (view/counterview) is invited. Word limit is 250-300. Last date of sending entries is 25th December, 2013. Include your picture (JPEG format) with the entry. Winning entries will receive a prize money of Rs. 500 each!

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silent voice

december 2013

Theme: IRCTC Last monthâ&#x20AC;&#x2122;s results Winner rutwik phatak | iim shillong

Congratulations!!! Rutwik receives a cash prize of Rs 1000!

honorary mention

nitin sonkar | kalpendra manu iim raipur

NEXT THEME FOR SILENT VOICE: Aam Aadmi Party LAST DATE OF SENDING THE PRINT AD: 25th December, 2013 EMAIL ID: markathon.iims@gmail.com Send your entry in JPEG format named as SilentVoice_<Your Name>_<Institute>only.

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AD-dicted

december 2013 BY sushree tripathy IIM SHILLONG

BY Swikruti panda IIM SHILLONG PRODUCT: Titan watches

PRODUCT: ICICI Direct

POSITIONING: The Joy of Gifting

POSITIONING: Leadership at work- for you

CREATIVE AGENCY: Ogilvy & Mather

CREATIVE AGENCY: Dentsu Communications Pvt Ltd

YouTube Link:

CATCH

http://www.youtube.com/watch?v=PQxFL6Ce-XM

http://www.youtube.com/watch?v=3bY7aOx8WHk

CONCEPT:

The ad opens in a huge galleried classroom, where a serious professor is busy scribbling on the board when the students all of a sudden start thumping on the desk to his amaze. Then eventually, using stationeries the students in sequence produce sound which turns out to be Titan’s legendary jingle which rings a bell with lots of memories. The next level is reached when the students orchestrate in chorus and all other faculty and staff join. Just at the climax a student comes up to the awestruck professor and hands him a scrap book with pages capturing all the precious moments , with a titan watch at the end, that says ‘Thank You Sir’ by its side. The ad closes with the overwhelmed professor in tears. VERDICT: Catch

MISS VERDICT: Miss

This ad clearly re-iterates the age old culture of gifting, selflessly, by wonderfully capturing the joy of both giving and receiving. More importantly with this ad, Titan brings back the jingle. The emotional bonding with the brand that the Indian consumer shares is reinforced by this move. The brand recently was into a lot of innovation in lines with fast changing customer preferences with several sub-brands. In the midst of all this the audience had lost the bond it had with the parent ‘Titan’. The idea is prudent. And yes, Titan watches as gift are timeless!

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As the leading online retail investment platform in the Indian financial services market, ICICI Direct has come up with a new brand building ad campaign launched nationally conveying the brand’s message of ‘unmatched convenience and expertise in investments’. The shot opens with the iconic BSE building being transported from its location with futuristic and gigantic equipment. It goes on to show a series of structures, financial centers and oil rigs being moved to the location of a young investor trading on ICICIdirect.com in a faraway land. The ad has been executed with sophisticated quality production akin to a sci-fi Hollywood adventure with aerial top shots and gigantic shadows.

The ad does turn a few eyeballs as the execution stands out in a category that has largely focused on consumer education and awareness, through its communication. It does take pioneer a higher benchmark in terms of production quality. However, for an investment platform that is positioned around trust and convenience, it does not reinforce those aspects in any way. Although the ad is not aimed at generating leads at all, too much emphasis on scale and technology withdraws the brand from empathizing with its target consumer. Several scenes seem disconnected and the anti-climactic reveal is honestly a let-down after the exciting build up that it opens with. It seems, in a bid to be seen as futuristic, the campaign has missed all the right flags and turned out to be less bang for more buck.

IIM Shillong

bookmark

october 2013

Bookmark Pallavi Chauhan | IIM Shillong As the curtains draw on the year 2013, the team here at Markathon has decided to put down the curtains on Bookmark as well. As we close here is a look at the books reviewed over the past year. Different: Escaping the Competitive Herd by Youngme Moon is a clear winner here. The Company of the Future Meeting the management challenges of the communications revolution By Frances Cairncross In her book the author discusses how internet will be affecting every aspect of the business, both internal and external. She has covered the various aspects of the business ranging from knowledge management, customer and brands to corporate structure and, how they will be affected with the introduction of new technologies. Also touching upon how to lead and manage these changes. Verdict: 4/5 Brainfluence 100 Ways to Persuade and Convince Consumers with Neuromarketing By Roger Dooley A compilation of a hundred small, bite-sized ideas, each one based on neuroscience or behaviour research, applicable to a wide range of budgets and situations that need to be taken into consideration when building business strategies such as setting price points for the products, sensory marketing, brand associations, and website management strategies to name a few. This is a book of practical advice for marketers, managers, and business owners giving a sneak peek into the thought process of a consumer. Verdict: 4.5/5

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Different Escaping the Competitive Herd By Youngme Moon The book stands on the premise that more fiercely the companies compete with each other, the more similar they become to the point that theses “differences” become laughable which is particularly true in mature product categories. She harps on the need for creativity – “the need to develop new habits, new disciplines, and new conventions” around the exercise of competition that would lead to the possibility that an extraordinary outcome may emerge. Verdict: 5/5

But as we let go of the old, it makes way for the new. Keep watching this space for an exciting new section!

IIM Shillong

jab they failed

december 2013

Jab They Failed When “Virgin” didn’t fizz enough Vaibhav Annam | IIM Shillong There are only few companies in this world which have diversified to such an extent that identification of their core business indeed needs quite some thinking. Such companies often suffer from what is known as Brand Megalomania, meaning unnecessary brand extensions ultimately ending up hurting the firm. A macho Harley Davidson launching perfumes is one such example. But among those which have successfully diversified is the flamboyant Virgin Group. Led by charismatic Sir Richard Branson, the Group garnered revenues of $24 billion in 2012 from presence is businesses ranging from banking, travel, consumer electronics and financial services to films, mobile phones, music, radio and internet. But the aim to become indisputably ubiquitous in the world has often been met with dead ends and wrong turns. One such was the overambitious launch of Virgin Cola in 1994. “I want Virgin to be as well-known around the world as Coca-Cola”, said Mr Branson sometime in the 90s. He was apparently not convinced with the duopoly of Coca-Cola and Pepsi which existed in the market. And he sought to change that. Virgin Group was rapidly adding new businesses in its portfolio and it believed that time was ripe to enter the “fizzy” Cola industry. And thus was born Virgin Cola in 1994. The product witnessed several advertising stunts during its time on the shelves. In 1996, riding on the immense popularity of movie star and entertainer Pamela Anderson, the 500 ml bottles were called as “The Pammy”. But it was only in 1998 that Virgin Cola under-

stood what it was up against. In 1998, Richard Branson launched the product in the US by riding a vintage Sherman tank through New York’s Times Square, crushing rival brands’ bottles on the path below. The tank aimed fire at a huge Coca-Cola banner, and the glitzy entrepreneur placed his own 40-foot Virgin Cola billboard right above the Times Square Virgin Megastore. Characters from TV Series Friends were often shown sipping the drink. Virgin Cola was also priced around 15 to 20 % lower than its rivals. But only a few years into the launch of the product, it was taken off the market. Market share of the drink in the US stood at 0.5% and in its homeground of the UK was less than 3%. The drink never raked in profits. The primary reason of this was that Mr Branson had seriously underestimated the clout of Pepsi and Coca-Cola. Virgin Group had traditionally exploited the lethargy of existing brands in an industry before deciding to enter the same. But the scenario was different in the soft drink industry. “That business taught me not to underestimate the power of the world’s leading soft drink makers. I’ll never again make the mistake of thinking that all large, dominant companies are sleepy!”, he said later. Coke had responded vigorously to Virgin’s entry by doubling its expenditure on advertising and promotion. Though Virgin Cola scored high on Product, Promotion and Price, the fourth P, i.e. Place, was nowhere to be found for Virgin Drinks. Coke and Pepsi had deep pockets and long-term contracts with retailers. This case is a classic example highlighting importance of distribution for a brand, especially in the FMCG sector. Virgin should have rather invested heavily in building distribution channels and understanding the position of competitors in the market. Though the Virgin Cola tried to make a comeback by spending £3 million on advertising in launching a new product called Mini-V in June 2000, the whole experience in Cola industry was described as the most favourite failure by Sir Richard Branson

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radical thoughts

december 2013

Radical Thoughts Celebrities rake in millions

throughout their life. And even after their life !!

Ashok A | IIM Shillong

In one of the beautiful articles written by Al Ries, he claims Celebrity Worship is not just a human trait. He cites a behavioral trait to authenticate his claim. In a Chimpanzee colony, when a dominant male is hurt his hand and limping, all the juvenile males exhibit a strange behavior. They start to imitate his limp, as a form of flattery. This scene was unlikely if the injured male was not a dominant one. This is one example which shows celebrity worship is all pervasive.

lion lying in his coffin. Much of his earnings came through two Cirque du Soleil shows in his name, apart from usual royalty for his music. Another top afterlife earner is the immortal Elizabeth Taylor. Her signature line White Diamonds perfume is the reason. The list of such earners includes John Lennon, Elvis Presley, and Charles Schulz of Peanuts Fame, Bruce Lee, Marilyn Monroe, Bettie Page and many others. Surprisingly the list includes Albert Einstein, a scientist but still a celebrity of all sorts.

But what make these selected few make paychecks coming even after death? A deeper look will tell us that, it needs more than marketing to achieve this. It would be a combination of marketing, legal management of royalties and patents, proper client manageE a r l i e r ment etc. Historical studies show that w whopping Market- 86% of advisors fail to keep the assets when a client ing was dies, often because there’s just no deep relationship primar- there. So it is imperative to create and sustain this ily about relationship between your brand or asset and anyp r o d - one who will manage it after the demise of the celebucts. But rity. When now it’s everything m o r e – a powerabout celebrities in most of the segments, especially ful celebin Fashion Apparels, Perfumes, and Sport Goods etc. rity, a strong We are ready to shell out money to get a glimpse of b r a n d , anything related to our favorite celebrities. Maga- proper aszines like People, Filmfare etc. make money because set managewe love to read about celebrities. We pay super ment – fall premium for a bottle of perfume from our favorite in place, celeb’s signature line. And what is extra-ordinary is post morthat most of these celebrity endorsed products and tem money brands outlive these celebrities themselves. Literally is sure to these brands help these celebrities become immor- flow for long tal in our minds and also make millions even after years after a their lifetime. celebrity ’s death. Michael Jackson, King of Pop, has earned $160 Mil-

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updates

december 2013 Titan enters the helmet segment

By Prateek Gaurav

Brand Launch Jolla says Hello World

The latest entry to the smartphone market comes in the form of jolla, running on Sailfish OS which is a developed version of Meego. The phone featuring 1.4 GHz processor and an 8 MP rear camera comes from the stable of ex-Nokia developers trying their hand at the fast growing Smartphone market. The phone looks to provide a differentiated offering to consumers and spoil them for choice.

Ride the world with Triumph The British motorcycle firm made its India debut riding on

a burgeoning two wheeler market in India. The company launched 10 new models in various categories to make a dent in the market and has plans to open four dealership in India with entry prices of bikes starting close to Rs. 6 lakhs.

HTC unveils its best bet

The monster is out. HTC launched its latest gizmo HTC One Max much to the awe of customers with a humongous 5.9 inch HD display screen, a large battery pack and a 1.7 GHz processor. The device is the biggest released from HTC One umbrella and looks to get customers queuing up for the gadget. The stage is al set for a battle of giants with Samsung looking to launch its Note

Brand Watch ‘Motherly call from Colgate

To stay relevant in the market and create an impact to consumers, the brand must be differentiated in the minds of consumers. With the same insight, Colgate in its latest campaign move away from its traditional pitching point of being No. 1 and dentist’s favorite to a more emotional appeal to being the choice of mothers. The brand tries to break the clutter by including the buying decision makers in its brand appeal and hopes to push in more sales through the strategy.

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From watches, jewelry, eye-gear and now to helmets, Titan is gradually but surely expanding its clutches. The Fastrack brand has been stretched to include helmets under its umbrella. The 400 crore organized helmet market offers huge opportunity for Titan to experiment and capture market share by leveraging on the Fastrack brand equity. How successful it becomes is something to be seen.

Amazon’s drones look to capture the sky

The entire tech and media space is buzzing with the latest innovation from the Earth’s biggest bookstore, named Prime Air. The intention is to bring a revolution in logistics via aid of unmanned programmed delivery bots who will cut down on human intervention and ensure faster delivery of orders. However, the idea is still in the pilot stage and will require many formal approvals before it becomes a reality.

Media GSK’s sign-on bonus unleashes media storm British pharmaceutical bellwether is facing the wrath of media veterans after it released its new sign on bonus condition while tying up with media houses. As per the clause, media house which sign up with the company will have to pay a bonus amount to GSK for signing up with the firm. Industry veterans are vociferously opposing this move calling it impractical and absurd and are concerned that it will hurt their profit margin.

Parle’s Tom and Jerry with Milk Shakti

The Indian FMCG major launched special edition cream biscuits under the Milk Shakti brand in association with Warner Brothers. The brand which was earlier endorsed by M.S.Dhoni and Viswanathan Anand looks to target children in the age group of 4-14 years and hence this move. The brand is looking for an integrated promotion with focus on TV, print, outdoor and other point of sale activities.

Ad Watch Vodafone pitches with seamless connectivity

The ad encompasses life of a girl who breaks up with her

IIM Shillong

updates

december 2013

partner and revolves around different moods of the girl which she keeps on posting on Facebook sighting instant connectivity with Vodafone. The brand tries to live up to its promise of “Made for sharing” and conveys the same throughout the ad. The brand does a decent job with the ad but nothing like the magic they created with zoo-zoo. Youtube Link: http://www.youtube.com/ watch?v=SdQtLzkt1b4

Reunion with Google

When the internet giant decides to roll out an ad for its search feature, it does so with style. The ad takes you to an emotional journey of reunion of two old friends separated by borders and lost in time. Ogilvy does a tremendous job and joins the strings of relationships and beautifully depicts the value proposition of its clients. The online hits of the ad pay a tribute to its popularity and acceptance. Youtube Link: http://www.youtube.com/ watch?v=gHGDN9-oFJE

Hatao khich khich with Vicks

Vicks pulls of a nice comic ad in its latest offering and does effectively communicate its value offering. The ad featuring a tattooed girl and her boyfriend discuss the acceptance of the girl by his family members and the boy pulls off a nice humorous line sighting the acceptance of the girl by his mom. Overall a nice watch and an effective ad by the P&G brand. Youtube Link: http://www.youtube.com/watch?v=OhPa_ m1hAnQ

Articles are invited

“Best Article”: Utkarsh Modi | IIFT Delhi He receives a cash prize of Rs.1000 & a letter of appreciation We are inviting articles from all the B-schools of India. The articles can be specific to the regular sections of Markathon which includes: • Perspective: Articles related to development of latest trends in marketing arena. • Productolysis: Analysis of a product from the point of view of marketing. • Strategic Analysis: A complete analysis of marketing strategy of any company or an event. Apart from above, out of the box views related to marketing are also welcome. The best entry will receive a letter of appreciation and a cash prize of Rs 1000/-. The format of the file should be MS Word doc/docx. We’re inviting photographs of interesting promotional events/advertisements/hoardings/banners etc. you might have come across in your daily life for our new section “The 4th P”. Send your self-clicked photographs in JPEG format only. The last date of receiving all entries is 25th December, 2013. Please send your entries marked as <ARTICLE NAME>_<SENDERS’ NAMES>_<INSTITUTE> to markathon.iims@gmail.com.

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We would love to hear from you: markathon.iims@gmail.com www.issuu.com/markathon

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